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The mid-term elections in the US are on the horizon, coming this November. In the near term, bond markets have become nervous about how the tax cuts in the US will be funded. When all the tumult in Washington spills over to affect the cost of their money, this will focus attention.

The cost of raising financing to fund the tax cuts is a simmering issue, potentially heating up if markets don't start to settle down. This has the makings of getting attention in Washington where the importance of the upcoming mid-term elections are beginning to matter. This won't take long if markets keep behaving so badly. Comments this week again track what is driving the changes in bond yields, and how it might play out.

The dividend paying sector in Canada is not being spared, yet with few exceptions; all names are expected to continue paying dividends. This would be at least at the same levels as are currently being paid.

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